A summary of the concernIndra Nooyi is the CEO of pepsico, PepsiCo has done a pretty good job since she took the helm six years ago. But nowadays the CEO is taking so much heat form investors. / The financial performance of pepsico earned high profit margins, Yet for all that, the conventional wisdom is that she and pepsico are in trouble. /Investors care only about what's ahead, and they are not confident. / This is investor’s dim outlook for pepsico’s economic profit. See the chart, it implies that investors don't expect PepsiCo's economic profit to increase for years; on the contrary, they expect it to decline slowly. 1.The CEO, Indra Nooyi has destroyed the company's performance by committing too much time and money to healthy products that make a CEO the darling of the Global Initiative but that real-world consumers don't want to buy. Its all-important return on capital has plunged. Several of its most valuable brands, such as Pepsi and Doritos, have lost strength or market share, or both. 2. In an industry that survives by exciting consumers with new products, innovation has been weak; the company has introduced flavor tweaks such as Cherry Vanilla Pepsi, for example, but nothing to match Coke's hugely successful Coke Zero and attention-grabbing bottle and can designs. 3. And also Basic execution has been subpar; the company has had trouble holding its share of retailers' floor space. 4. Overhead has ballooned, leaving the company less efficient and productive than it needs to be.

An examination of measures being taken to address the situation 1.The CEO Nooyi acknowledges that pepsico has to change. (The company plan to cut 8,700 jobs through 2014 (about 3% of the total), consolidating facilities, and finding other efficiencies, saving about $1.5 billion over the next three years. ) It will increase advertising and marketing by $500 million to $600 million this year, focusing on a handful of big brands like Pepsi and Doritos in North America. The cost...

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...1. What three costs do pennies impose on society?
a. The cost of metal used in pennies has gone up beyond the face value of the coin itself. So manufacturing pennies is not worth. It takes approximately 1.8 cent to create one penny coin. Eventually this cost will be suffered by the society.
b. Pennies are not worth the time to count or store in the current economic market.
c. Pennies result in dead weight transaction in the economy.
2. Are U.S. coins fiat money or commodity money?
Other than pennies and nickels, U.S. currency today is fiat, the face value being substantially more than the value of the metal or paper.
3. Why such a slow recovery? Name the explanations for the slow US recovery John Taylor reject. Explain his reasoning.
Slow Recovery - Gap does not close between Potential GDP and Real GDP. This is due to variety of macro and micro reasons.
Macro reasons - long time low interest rates, debates about the size of multiplier
Micro reasons - demand for housing, stimulus package aimed at health care, excessive risk taking
Secondly the growth rate of Real GDP was very low. Due to low growth rate, Employment recovery was weak, causing big fraction of working age population not working.
4. Which argument does John Taylor find most convincing?
John finds bad economic policy being the major reason for slow economic growth- like stimulus packages, cash for clunkers, subsidies for first time home buyers. All these created short time solution but not...

... Pepsico: Competition in Energy Drinks, Sports Drinks and Vitamin-Enhanced Beverages
Indra Nooyi’s is considering you for a brand management position at PepsiCo. Please prepare a Report to Management that details PepsiCo’s situation and future prospects in the global and U.S. alternative beverage industry. Give your recommendations as to what actions top management should take to enhance PepsiCo’s position and future performance particularly asconcern competing effectively in the market for energy drinks, sports drinks and Vitamin-Enhanced beverages. The assignment carries 10% weight in course grade.
Consider:
Apply the Five Forces model,
Driving Forces Analysis,
Explain Business Model,
Evaluate PepsiCo’s financial performance,
Complete a SWOT for PepsiCo,
Comment on PepsiCo’s competitive strategy,
Find updated information on PepsiCo’s situation and industry outlook,
Make recommendations for improving the company’s competitive position in the energy drinks, sports drinks and alternative beverages industry and its financial and market performance.
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Reading: Thompson, Case 5, pp. C75-C87 in Glo-Bus Premium.
Date due in the Assignments Folders: Monday, October 08, end-of-day.
Instructions
The following Q&amp;A exchanges on preparing written case analysis may be of interest.
Student Query: With this case study, I...

...the followings;
Product policies
Pepsi – In order to penetrate local tastes, Pepsi foods launched Lehar 7UP in the clear lemon along with Lehar Pepsi. To complete with local brand such as the big company like Parle, Pepsi launched two more brands, Slice and Teem in order to gain more market shares, which was 26 percent at that time. The feature of bottles also encouraged consumers to purchase frequently. Pepsi introduced a smaller-size bottle, 200-ml bottle, in the market where everyone else offered 250-ml, 300-ml, and 500-ml bottles. Products lines had been added such as Mirinda Lemon, Apple, and Orange in 200-ml bottles. To cope with the decline in soft drink sales, PepsiCo launched a water bottle, Aquafina, in order to add more choices and attract non-carbonated drinkers. Apart from water, and soft drink, PepsiCo focused on fruit juices, juice-based drink, and especially Gateorade since consumers have become more self-consious.
Coca-Cola – Its main product soft drink lines are Coke, Thums Up, Limca, Sprite and Fanta. However, Coca-Cola also introduced the “Mini” versions to boost up the volume of soft drink sales. Not only its soft drink products, but also water bottle created by Coca-cola, Kinley, had become a significant product line that achieved 28 percent of market shares. Coco-Cola also altered the size of bottle in order to fit consumer’s usage and benefits. The sizes include 500-ml, 1 liter, 1.5 liter, 2 liter, 5 liter, 20 liter, and...

...11/04/2012
Number 1 challenge at PepsiCo and what is working:
The number one challenge that PepsiCo is facing is the rapidly changing global economy particularly the slowing U.S. economy. Although, PepsiCo businesses have generally proved resilient in past down turns, it is unclear where they will land during the current slide. To combat the challenges, PepsiCo is going to utilize all tools at their disposal from a productivity stand point, to research better product formulas and ingredient sourcing. They are always coming up new products and new marketing ideas. They have dedicated themselves to offering consumers a wide variety of choices for healthy and convenient snacks / beverages. PepsiCo also balances strong financial returns with giving back to communities in the U.S. and abroad. These returns to the communities have earned them named for the fourth time to the Dow Jones Sustainability World Index and for the fifth time to the Dow Jones Sustainability North America Index in 2010. They were also a top performer in the beverage sector. (PepsiCo, 2012).
To ensure that PepsiCo can continue long into the future, it is making considerable efforts and strides to protect the environment it utilizes. In 2010, it launched the Dream Machine, a recycling partnership with three other companies. The partnership has a goal of increasing U.S. beverage...

...﻿
PepsiCo
FIN/370
4/2/2014
Dr. Chrissy Helbling
PepsiCo
Ethics and compliance are important in all organizations. Maintaining good ethics and compliance keeps companies running properly and making sure that things are done legally to protect the company as well as the employees. When dealing with the financial environment of the company, ethics must be upheld to make sure that all is fair to all that are involved. At PepsiCo the belief is to always do the right thing both ethically as well as responsibly. PepsiCo is continuously changing and updating their code of conduct as the laws change from year to year and have an impact on their company. PepsiCo believes that the employees are to embrace the company principals which are to, show respect in the workplace, act with integrity in the marketplace, ensure ethics in business activities, and perform work responsibly for the shareholders (PepsiCo, n.d., ¶3). In November, twenty thirteen, PepsiCo was presented leadership recognition for maintaining the best overall governance, compliance and ethics program. PepsiCo states their success is due to collaboration and partnership with internal colleagues and interested stakeholders and investors (PepsiCo, n.d., ¶ 3). The thought process behind PepsiCo’s ethics and compliance is a dynamic corporate governance that changes according to...

...PepsiCo
Human Relations in Management
MAN 4101
Spring 2013
February 17, 2013
Abstract
From the time Pepsi merged with Frito Lay to form PepsiCo, the organization has grown. PepsiCo expanded their product portfolio to include something for all consumers. As a leader in the food and beverage industry and operating globally, PepsiCo has implemented a strong training background that develops employee’s managerial and leadership skills. The commitment of PepsiCo is Performance with Purpose, which is the pledge to deliver sustainable growth by investing in a healthier future for people and our planet (PepsiCo, Inc, 2012).
History
After dropping out of medical school, Caleb Bradham opened Bradham Drug Company. It is during this time, Bradham developed Brad’s Drink. Brad’s Drink consisted of a blend of kola nuts, vanilla, rare oils, sugar and carbonated water. In 1898, he renamed the drink Pepsi-Cola and bought the trade name Pep Cola for $100. Out of the back of his pharmacy, in 1902, Bradham launched Pepsi-Cola Company.
After years of rapid growth and success, in 1923, Pepsi-Cola went bankrupt and Bradham lost Pepsi-Cola to Craven Holding Corporation for $30,000. Shortly after, the Pepsi-Cola trademark was purchased by Roy C. Megargel. He was unable to save the company and Pepsi-Cola went bankrupt for the second time. Charles G. Guth, a candy manufacturer, president of...

...The PepsiCo Company never ends the World’s #2 carbonated soft drink maker. The company’s soft drinks include Coke, Sprite and Fanta. Coca-Cola is not the company’s only beverage; Coca-Cola sells Minute Maid juice brands, Aquarius sports drinks, and Kinley water. PepsiCo and Coca-Cola hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest by Pepsi.
Problem Identification
1) Losing market share to its competitors
Pepsi’s main competitor, Coca-Cola has twice as many vending machines, dominated fountains, had more shelf space in retailer and is competitively priced. Coca-cola dominates fountains at fast food restaurants such as McDonalds and Subway.
2) Saturated market in the United States
The beverage industry in the US is no longer expanding because it is saturated with competitors such as Coca-Cola and Cadbury Schweppes. In addition, market share is actually decreasing as more consumers are looking to healthier options. This is due to the fact that consumers are more aware of their health and living healthier lifestyle. Consumption of carbonated soft drinks in the US has been in steady decline over the past decade, in part because of the abundance of alternative beverages available in the market, from still water to sports drinks, and in part out of health concerns in a nation with an obesity problem.
3) Overdependence on the United States market
Despite its international...

...﻿PepsiCo
History
1965
PepsiCo is founded
PepsiCo, Inc. is founded by Donald M. Kendall, president and chief executive officer of Pepsi-Cola and Herman W. Lay, chairman and chief executive officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W. Lay, also in 1932. Herman Lay is chairman of the board of directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are:
Pepsi-Cola Company: Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948).
1970
PepsiCo moves from New York City to new world headquarters in Purchase, N.Y. The new corporate headquarters feature a building by one of America's foremost architects, Edward Durrell Stone (1902-1978), set on a campus of 144 acres amid an outdoor sculpture garden.
Frito-Lay begins a program of expansion. Over the next decade, the company opens, on average, more than one new plant a year.
Pepsi is the first company to respond to consumer preference with lightweight, recyclable, plastic bottles, and introduces the industry's first...